An increase in capital per worker will generally decrease output, but to increase capital requires consumption expenditure, which in turn requires resources that__________.

Increasing capital per worker may increase output initially, but may possibly lead to diminishing returns if it's excessive. Acquisition of additional capital also involves consumption expenditure, which requires resources that can strain a country's or company's assets.

Explanation:

In economics, an increase in capital per worker can indeed lead to greater output under the broad theory of production. The more tools, equipment, and technology a worker has at their disposal, the more efficient they can be, generally increasing output.

However, acquiring this increased capital involves expenditure of resources, mainly through consumption expenditure, which can put strain on a country or company's resources.

That said, there is always the risk of diminishing returns. If too much capital per worker is added, the additional output benefits might decrease over time. As always, balance is key. The decision to allocate resources towards capital depends on whether the anticipated increase in output justifies the resource expenditure required and the possible opportunity cost involved.

Learn more about the topic of Capital here: brainly.com/question/35449372

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